EUR/USD is powering higher, trading at 1.2809, the day's high on poor US wholesale inventories (up 0.8%) and lower than the median forecast U Mich. The irony being that the single currency was already rallying ahead of the number on rumours that it would be 91.8, vs the median 93.5-93.7, and came in at 92.3.
Do you buy on the disappointment that it was lower than the median forecast, or sell on the fact that it wasn"t what was rumoured? On net the US inventories number shows the economy is slowing, and U Mich confirms that, so both dollar negatives, therefore the dollar should shed a little ground.
Will it be enough to take out the 1.2850 barriers, and will the central banks that were buying this AM continue to play the ranges as they have been over the past few months difficult to say. On balance the day has set everybody up for a fall, and the likelihood is that ranges will hold.
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